VATNMT8200 - Treatment of specific cases: non-NMT movements

Note: The content of this manual applied up until 31 December 2020. Any content still applying to Northern Ireland after this date can be found in the VAT New Means of Transport Northern Ireland (VATNINMT) manual.

Acquisition of vehicles that are no longer new means of transport from another member-state

Means of transport that move between EU member states after they have ceased to be NMT (as defined) will not be subject to acquisition tax in normal circumstances. However, if the vehicle has not been subject to VAT in any member state then enquires will need to be made into whether VAT is due here.

Not all EU member-states have the same 2 month removal rule (VATNMT4300) with periods of time ranging between 1 day and 1 year. That means there is plenty of scope for means of transport to legitimately arrive in the UK tax-free but no longer new means of transport as defined in VATNMT3000.

If the means of transport is untaxed that is a good indication that there was an intention to remove and tax elsewhere. Reference to the “Swedish yacht case” VATNMT3600 should assist in looking at the intentions of the customer.

If the conclusion if that the tax is due in another member State then the PTU can notify the authorities there and collect the VAT on their behalf